Hello -
My company recently did a fixed asset audit, and found large pieces of equipment that weren't on the books.
Come to find out, one of the pieces of equipment was acquired after we rented it from a company that went out of business. We kept the equipment at no cost.
How should have these been recorded? Debit should have been equipment, would the credit just be to a gain/loss account?
Fast forward to today - should we place this equipment on the books?
Looking for any guidance in the codification - but not sure it exists in this unique situation.
My company recently did a fixed asset audit, and found large pieces of equipment that weren't on the books.
Come to find out, one of the pieces of equipment was acquired after we rented it from a company that went out of business. We kept the equipment at no cost.
How should have these been recorded? Debit should have been equipment, would the credit just be to a gain/loss account?
Fast forward to today - should we place this equipment on the books?
Looking for any guidance in the codification - but not sure it exists in this unique situation.
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